Dynamic Trading and Mutual Funds
The Dynamic Trading approach to technical analysis and trade/investment strategies is just as applicable to mutual funds as it is to futures and stocks. Mutual Fund Traders would find the STOCK Report to be most helpful.
The DT Stock Report includes comprehensive analysis of the short to long term position of the Stock Indexes plus Mutual Fund long or short recommendations.
Below is a recent example of the position of the Rydex Arktos fund which trades inversely to the Nasdaq 100 Index. The chart below is the weekly data through mid-Jan. 2002.
The recent low was made at the ideal time and price targets for the W.A low. If the low is confirmed, the minimum advance to the W.B target is over 23% above the current market position.
When we are able to identify the high probably reversals, the initial capital exposure (what some mistakenly call "risk") is usually very small. With the present Arktos set-up, the capital exposure is less than 4% for a potential gain of 23% or more. Is a 5:1 "risk/reward" ratio acceptable to you? It should be!
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